Stonepeak, First State garner £75m each from UK pension

The move by the Worcestershire County Council Pension Fund, which knocked back an approach from I Squared, represents its first steps in boosting its infrastructure allocation.

The UK-based Worcestershire County Council Pension Fund has committed £75 million ($96.3 million; €85 million) each to funds managed by Stonepeak and First State.

While the pension fund did not disclose which vehicles have been invested in, Stonepeak is known to be preparing to launch a third infrastructure fund as a successor to the $3.5 billion vehicle it closed in January 2016. First State, meanwhile, is set to open the second series of its European Diversified Infrastructure Fund II in the coming months while also raising capital for a Global Diversified Infrastructure Fund.

The £150 million delivery also saw an unsuccessful attempt to garner funds by I Squared, which Infrastructure Investor revealed this week is expected to reach a $2.5 billion first close on its Global Infrastructure Fund II in the next two to three months.

Worcestershire County Council could not be reached for comment before press time.

The investments were made following the pension fund’s decision last December to increase its joint Infrastructure and Property allocation from 10 percent to 15 percent. The commitments to Stonepeak and First State “would provide good diversification away from the fund's current UK-focused infrastructure investments,” it explained in documents following a meeting this month.

The pension fund’s previous infrastructure commitments include becoming one of the first LPs in the UK Green Investment Bank’s pioneering offshore wind fund in April 2015 and helping Hermes Investment Management to a £1 billion close on its first infrastructure fund in May 2015. Both funds are focused on UK investments.